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<classification authority="sudocs">GA 1.13:AIMD-99-20</classification>
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 <subject>Cost effectiveness analysis</subject>
 <subject>Personnel management</subject>
 <subject>Management information systems</subject>
 <subject>Defense cost control</subject>
 <subject>Commercial products</subject>
 <subject>Computer software</subject>
 <subject>Productivity in government</subject>
 <subject>Information resources management</subject>
 <subject>Civilian employees</subject>
 <subject>Privatization</subject>
 <identifier>DOD Defense Civilian Personnel Data System</identifier>
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 <title>Defense IRM: Alternatives Should Be Considered in Developing the New Civilian Personnel System</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the Department of
Defense&apos;s (DOD) efforts to reduce the costs associated with civilian
personnel management, focusing on: (1) how DOD determines the number and
locations for civilian personnel regional service centers and why is
there a wide disparity in the number of regional centers among the
services; (2) whether DOD is applying the investment principles of the
Clinger-Cohen Act in overseeing, managing, and developing the Defense
Civilian Personnel Data System (DCPDS); (3) whether DCPDS duplicates the
Office of Personnel Management&apos;s (OPM) Employee Express System: (4)
whether DOD leadership is aware of the extent and cost of the needed
modifications to the commercial-off-the-shelf (COTS) software
applications; and (5) whether DOD identified and mitigated the risks
associated with the major COTS modifications.&lt;p/&gt;GAO noted that: (1) DOD&apos;s current initiative can potentially improve
civilian personnel operations and achieve cost savings; (2) however,
because the Department has not examined other business process
alternatives that could have potentially achieved even greater savings
and process efficiencies, there is no assurance that this is the best
alternative for civilian personnel operations; (3) before embarking on
its costly initiative to improve personnel management, DOD examined two
alternatives: (a) outsourcing personnel computer operations to the
Department of Agriculture&apos;s Finance Center; and (b) regionalizing
personnel centers; (4) DOD determined that it would take the National
Finance Center about 6 years to prepare for transferring computer
operations and that some new functionality built into its legacy system
would be lost; (5) however, DOD did not examine several other
potentially effective alternatives, including: (a) continuing to
centralize all or parts of its personnel management operations to reduce
duplicative layers of oversight at the components and ensure more
consistent operations DOD-wide; (b) integrating its personnel and
payroll management systems; (c) restructuring its regional offices to
serve multiple components rather than perpetuating regional offices
dedicated to only one component; (d) restructuring local personnel
offices to serve multiple bases or installations (they now serve only
one base or installation); and (e) outsourcing all civilian personnel
operations to the private sector; (6) these alternatives are feasible
and may have helped DOD to achieve even greater savings and efficiencies
than the current approach; (7) in addition, the Defense Science Board
determined that integrating payroll and personnel systems was a viable
and cost beneficial option for military personnel; (8) the Civilian
Personnel Management Service (CPMS) officials who were responsible for
the personnel initiative said that they did not consider these business
processing alternatives because: (a) CPMS did not have authority to
require the military services and DOD agencies to adopt such approaches;
(b) DOD did not allow sufficient time to rigorously examine
alternatives; and (c) DOD lacked basic cost and performance data needed
to study the alternatives; (9) after it decided on its approach, DOD did
not follow a sound process for selecting regions; (10) DOD did not
adequately consider a full range of technical options before deciding to
replace its legacy system with the Oracle COTS product; and (11) after
DOD acquired the Oracle system, it did not mitigate critical technical
risks.</abstract>
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<identifier type="preferred citation">GAO/AIMD-99-20</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/AIMD-99-20; Defense IRM: Alternatives Should Be Considered in Developing the New Civilian Personnel System;
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<subject>
 <topic>Cost effectiveness analysis</topic>
 <topic>Personnel management</topic>
 <topic>Management information systems</topic>
 <topic>Defense cost control</topic>
 <topic>Commercial products</topic>
 <topic>Computer software</topic>
 <topic>Productivity in government</topic>
 <topic>Information resources management</topic>
 <topic>Civilian employees</topic>
 <topic>Privatization</topic>
 <topic>DOD Defense Civilian Personnel Data System</topic>
 <topic>OPM Employee Express System</topic>
 <topic>Y2K</topic>
</subject>
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